Immunodiagnostic Systems (IDH) has been reorganising itself over the past 12 months. Led by new management, that process aims to offset the ongoing decline of its manual vitamin testing kits, as well as dealing with the intense competition offered by larger manufacturers of automated testing assays. These half-year figures offer a chance to judge progress and, with the steep decline in profitability having been reversed - underlying pre-tax profit rose 8 per cent to £5.2m - the signs look good.
The important point is that profit growth was triggered by increased sales of its automated tests for its IDS-iSYS platform. Total automated revenues grew by 29.3 per cent, in constant currency terms, to £11.2m - helping to more than offset the 17.8 per cent revenue decline to £11.4m in the manual testing kits business. Indeed, for the the first time, automated testing now generates an equal share of overall group sales. Despite that undoubted progress, however, the state of the European economy is a concern after a weak half for direct machine installations. Net placements numbered only 16, compared with the 41 achieved last time, to give a total directly installed base of 279. France was particularly hard hit with returns outnumbering installations, although the German market held firm.
Broker Investec Securities expects full-year pre-tax of £10.1m, giving EPS of 27.6p (from £9.8m/26.9p in 2013).
IMMUNODIAGNOSTIC SYSTEMS (IDH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 517p | MARKET VALUE: | £150m | |
| TOUCH: | 517-522p | 12-MONTH HIGH: | 530p | LOW: 257p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 288p* | NET CASH: | £24.3m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 23.8 | 6.26 | 16.5 | nil |
| 2013 | 26.8 | 4.11 | 12.6 | nil |
| % change | +13 | -34 | -24 | - |
Ex-div:- Payment:- *Includes intangible assets of £49m, or 170p a share | ||||
